Success Story
Supporting Retirees While Creating a More Sustainable Benefits StrategyA hospital system in West Virginia needed to redesign its approach to retiree healthcare benefits while maintaining meaningful support for its retiree population.
Predictable retiree healthcare costs
Reduced long-term financial risk
Defined contribution approach
Greater retiree flexibility
The Challenge
The employer made the strategic decision to discontinue its traditional retiree health plan due to long-term cost concerns. However, leadership remained committed to supporting retirees’ healthcare needs.
They needed an alternative that would:
Maintain financial support for retirees
Provide flexibility for retirees to choose their own coverage
Create more predictable, sustainable costs for the organization
Our Solution
EBC partnered with the employer to implement a health reimbursement arrangement (HRA) designed specifically for retirees:
Established an HRA with a monthly employer contribution to support retiree healthcare costs
Enabled retirees to select the healthcare plans that best fit their needs
Transitioned the employer from a traditional group plan to a defined contribution model
This approach replaced a one-size-fits-all program with a more flexible, individualized benefit structure.
The Result
The employer successfully transitioned to a more sustainable retiree benefits strategy:
Gained predictable, controlled healthcare costs
Continued supporting retirees without maintaining a traditional group health plan
Empowered retirees to choose coverage that fits their individual needs
Reduced long-term financial exposure for the organization
By shifting to a defined contribution approach, EBC helped the employer achieve cost stability while maintaining meaningful retiree support.
Plan for the Future with Confidence
Create a more sustainable retiree benefits strategy while continuing to support your workforce.